Telstra Group Limited · ASX:TLS
Telstra — Citigroup Australia & New Zealand 5th Annual Investment Conference and Goldman Sachs JB We (March 2008)
13 slides from Telstra's conference presentation, Mar 11, 2008
Slide 1: ASX cover letter: CEO presentation at London and New York conferences
11 March 2008 Office of the Company Secretary The Manager Level 41 242 Exhibition Street Company Announcements Office MELBOURNE VIC 3000 Australian Stock Exchange AUSTRALIA 4th Floor, 20 Bridge Street Telephone 03 9634 6400 SYDNEY NSW 2000 Facsimile 03 9632 3215 ELECTRONIC LODGEMENT Dear Sir or Mada
Slide 2: Transforming Australian Telecoms
Transforming Australian Telecoms Sol Trujillo, CEO
Slide 3: Disclaimer
Disclaimer • These presentations include certain forward-looking statements that are based on information and assumptions known to date and are subject to various risks and uncertainties. Actual results, performance or achievements could be significantly different from those expressed in, or implied
Slide 4: Financial Results (Reported)
Financial Results (Reported) $ billions (except margins & DPS) 1H08 1H07 % +5.9% Sales Revenue 12.3 11.6 S 5.3 EBITDA 5.2 4.9 S 5.2 Domestic EBITDA Margin (%) 42.2 42.3 T 0.1pp Revenue EBIT 3.1 2.9 S 6.2 PAT (post minorities) 1.9 1.7 S 13.0 +8.5% Accrued Capex 2.3 2.0 S 17.5 Free Cash Flow 1.3 0.9 S
Slide 5: Strength across all retail segments
Strength across all retail segments 1H08 Absolute Sales Revenue Growth $m +7.6% 650 +8.5% 400 +9.3% 150 +4.5% +7.8% -100 -4.6% TC&C TB TE&G Total Retail Sensis Wholesale (excl Sensis) 4
Slide 6: Strength across the board in products
Strength across the board in products…. World Class Domestic Revenue Growth Mobile Services +12.5% Telstra 5.9% Verizon 5.9% Telefonica 4.0% PSTN -2.1% China Telecom* 2.8% AT&T 2.6% +7.8% Sensis France Telecom 1.9% BT 0.8% IP and data access +8.3% -2.9% Telecom New Zealand -4.6% Telecom Italia* -7.8
Slide 7: Growing retail broadband in a tough market
Growing retail broadband in a tough market Telstra Retail Broadband Market Share BigPond market share increasing despite: Retail BB Market Share Growth YOY (PP) 2 2 400+ ISP competitors +4 Telstra Retail BB ARPU YOY 2 2 Continued price- TeliaSonera Sweden Telefonica +2 driven competition 2 2 Bundled
Slide 8: Mobiles – Winning the 3G 'value game'
Mobiles – Winning the 3G ‘value game’ Mobile Services Revenue Growth Mobile Data Revenue 12.5% $716m $582m $356m 4.7% 4.2% $490m 3.3% $321m 2.0% 1.7% $294m $130m 1.0% $103m -2.2% $120m $230m -3.3% $158m $76m ) ) Mo Ita om s ra ne Fr ge ce tra ge ro e ica 1 lia 1 tu pe lia UK Eu fon 1H07 2H07 1H08 an
Slide 9: Revenue decline slowed in PSTN
Revenue decline slowed in PSTN PSTN Revenue Growth (pcp) Index PSTN SIO trends 100 0.0% + 48 k 1H04 1H05 1H06 1H07 1H08 95 -2.0% - 203k 90 -4.0% -2.1% 85 -6.0% 80 -8.0% 2H05 1H06 2H06 1H07 2H07 Sept 1H08 07 Telstra Total Lines Telstra Retail European lines US lines -10.0% European Lines: DT, FT, KPN
Slide 10: Total Expenses +5.6%
Total Expenses +5.6% $74m $9,359m +3.7% $106m $7,307m $66m +9.2% +64.7% $48m $110m +4.6% +4.3% $96m $8,859m +4.8% 1H07 Labour DVC SC&A Impairment Other Opex Total D&A 1H08 Opex 9
Slide 11: Transformation remains on track
Transformation remains on track TR1 Update: On track to complete customer migration by the end of June 2008. TR2 Update: On track to go into production by the end of calendar 08. Next G™ network Continued development… Now covers 99% of population. Plans to upgrade to 21Mbps this year, 42Mbps in 2009
Slide 12: FY08 Guidance & LT Management Objectives
FY08 Guidance & LT Management Objectives Update of FY08 Reported Performance* Long Term Management Objectives** Previous FY08 Guidance Updated FY08 Guidance Total Revenue Revenue Growth 2.5% to 3.0% pa to FY10 2.0% to 3.0% 3.0% to 4.0% Growth Cost growth 2.0% to 3.0%pa to FY10 EBITDA EBITDA growth 2
Slide 13: Conclusion – driving shareholder value
Conclusion – driving shareholder value Network & IT Transformation Revenue growth Transform GTM Improving & Channels Shareholder Value Operating leverage Cultural Transformation 12